Tax Freedom Day® to Arrive April 13 in 2009

March 31, 2009

Tax Freedom Day will arrive on April 13 this year, according to the Tax Foundation’s annual calculation using the latest government data on income and taxes. This is the earliest in the year that Tax Freedom Day has fallen since 1967.

This is eight days earlier than in 2008, and a full two weeks earlier than in 2007, for two reasons: (1) the recession has reduced tax collections even faster than it has reduced income, and (2) the stimulus package includes large temporary tax cuts for 2009 and 2010. Nevertheless, Americans will pay more in taxes than they will spend on food, clothing and housing combined.

In the study, Tax Foundation Special Report No. 165, “America Celebrates Tax Freedom Day,” Tax Foundation staff economist Josh Barro traces the course of America’s tax burden since 1900, examines the composition of today’s tax burden by type of tax, and finally calculates a Tax Freedom Day for each state.

Tax Freedom Day moves somewhat independently from an alternative calculation that adds the federal budget deficit to total taxes collected. In 2009, an unprecedented budget deficit over $1.5 trillion produces a date of May 29. This is the latest date in the year this deficit-inclusive measure has ever fallen. The only previous years when taxes and deficit spending comprised a similarly large share of national income were 1944 and 1945, at the peak of World War II. In the postwar era, this date had never fallen later than May 9 (in 1992). Figure 1 below shows Tax Freedom Day as traditionally presented and with the inclusion of the federal budget deficit, since 1967 (click figure to enlarge).

Tax Freedom Day by State, 2009

State

Tax Freedom Day

Rank

United States

April 13

Alabama

April 2

44

Alaska

March 23

50

Arizona

April 10

23

Arkansas

April 4

37

California

April 20

4

Colorado

April 12

16

Connecticut

April 30

1

Delaware

April 11

20

Florida

April 9

27

Georgia

April 12

17

Hawaii

April 13

14

Idaho

April 12

18

Illinois

April 13

15

Indiana

April 8

28

Iowa

April 4

39

Kansas

April 8

30

Kentucky

April 3

41

Louisiana

March 28

49

Maine

April 6

33

Maryland

April 19

5

Massachusetts

April 16

7

Michigan

April 10

24

Minnesota

April 15

9

Mississippi

March 28

48

Missouri

April 6

34

Montana

April 3

42

Nebraska

April 8

31

Nevada

April 8

29

New Hampshire

April 10

22

New Jersey

April 29

2

New Mexico

April 2

43

New York

April 25

3

North Carolina

April 9

25

North Dakota

April 1

46

Ohio

April 11

21

Oklahoma

April 4

40

Oregon

April 9

26

Pennsylvania

April 14

11

Rhode Island

April 14

10

South Carolina

April 4

38

South Dakota

March 29

47

Tennessee

April 5

36

Texas

April 6

32

Utah

April 13

13

Vermont

April 12

19

Virginia

April 16

6

Washington

April 16

8

West Virginia

April 1

45

Wisconsin

April 13

12

Wyoming

April 5

35

District of Columbia

April 13

Read the full Tax Freedom Day report here.


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